Factors affecting the dwelling space market prices in Latvia

Abstract

This paper describes the factors that influence the length and deepness of real estate market cycles in the dwelling space market in Latvia. Real estate market cycle length and deepness is influenced by factors like crediting, income level, demographic situation in the region and other factors. In this paper, the authors describe the ways that these factors affect the dwelling space market in Latvia. Understanding the factors that influence the real estate market and knowing the interconnections between them give an opportunity to develop an economically sustainable real estate market from which all participants of the sector would benefit.